News & Views

Travel expenses – a problem for the future

A recent tax case has worrying implications for the tax deductibility of travel costs for self-employed individuals.

The case concerned a geriatrician who had a dedicated office at his home which he needed for his business – this was accepted by the Tribunal.

However, the doctor also worked as an employee for an NHS Trust, and additionally held out-patient sessions at two private hospitals on a self-employed basis. The doctor had his home office set up as his business address where he received correspondence, accessed emails and at that location prepared treatment plans for his private patients.

The doctor’s advisers held that his home office was his business base, the place from which his business was run. HMRC held that the travel to and from the private hospitals was not wholly and exclusively for business purposes.

The Tribunal found for HMRC.

As yet I have seen nothing about an appeal but if this judgement stands it gives serious concerns over travel costs going forward.

Mercer & Hole is registered to carry on audit work in the UK and Ireland and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. M&H Financial Planning Ltd is authorised and regulated by the Financial Conduct Authority and is a subsidiary of Mercer & Hole Group Limited. Registered in England and Wales No. 9585846. All Rights Reserved. For technical feedback please contact us. Terms & Conditions.